. good evening. i am gasia mikaelian and with a special presentation from the channel 2 newsroom. only on 2, ktvu investigations. in this program, we'll present the series of recent special reports that have affected change here in the bay area and impact yours daily life and we begin with the port of oakland, a $7 billion a year operation. we uncovered that top port officials tried to claim that the spending of hundreds of dollars of public money was legitimate expense. in one case the spending happened at a private room karaoke bar that some people suggest that front for prostitution. eric rasmussen leads the investigation. >> reporter: for several nights we recorded a parade of scantily clad women, many dropped off all at once from a mine vivan going into this downstairs bar in mid town oakland. it's a familiar scene neighbors say they have been concerned about for years. >> the first thing that i thought there is just too many of them to be waitresses in

this place. >> reporter: cafe juliet, a business that bills itself as a private room karaoke bar is also where the port of oakland's international marketing manager spend $5 auto,000 of the receipt shows his credit card was charged at 1:44 in the morning and he wrote it was a business meeting with four members of china merchants a large port operator in china who were in town for a trade symposium. >> it was what is going on down here? is it a weird prostitution goes on? >> reporter: when we visited the bar a regular told us, "you can get girls here." in an online review for the same location a customer says he was shown women and asked which one do you wan can you tell us what kind of business is being run here? >> kareke bar. >> reporter: what about all the girls that we see come in here? >> do you see any girls come

in here right now. >> reporter: we have seen girls? >> we have male and female connection here. >> reporter: you have a love connection here? >> yes. >> reporter: is anyone paying to be with these girls? >> no, i don't really know. >> reporter: we discovered the receipt from cafe juliet while continuing our investigation into uncovered $had a00 spent at a houston sports club by james quan. much like quan we found lawrence dongan was reimbursed. he made repeat visits to the 678 international club, a restaurant and massage parlor in china. >> shouldn't the port have known about these expenses? >> there is certainly deep concern, a mixture of shock and

dismay. >> reporter: after dodge ktvu's questions for weeks, the port know cite an ongoing investigation. >> we're going to get to the bottom of this matter. >> reporter: that is the answer that the port spokesperson gave to almost every one of our questions. why would the port re-burse them? >> it's all part of the investigation. >> reporter: they are doing this because they think they can get away with. it marvin brown say professor of business ethics and author of the book called "correspondent integrity." and says changing the culture at the port of oakland goes beyond putting a few executives on paid-leave. >> most people do what they think is right, considering the world that they think they live in. so what these events tell us, is that the kind of wonder that has been created by the people managing the port of oakland. >> reporter: as for lawrence donagon. we tried to reach him directly to hear his explanations for

visiting this karaoke bar. we are still waiting for a response. >> we are outraged. the media has exposed what we have known all along. >> what we uncovered set off a series of protests by oakland port workers. as you can see workers were furious after our first story and disrupted the next board meeting and put the top official ape its boards on the defensive and launched a series of investigations. within a week of our first story the port commission played executive director omar benjamin and maritime director james quan on administrative leave. as our investigation continued we discovered it was more than just oakland port officials who were visiting that same private room karaoke bar. some members of oakland police department made repeated visits to that place. here again is eric rasmussen with new video raising questions about what oakland police officers are doing on the clock. >> reporter: over four nights we watched the

same scene play out at cafe juliet. each night our camera recorded women in skimpy clothing filing into the downstairs business that bills itself as a private room karaoke bar. a minivan dropped off as many as seven women at a time. >> we were what is going on down there? is it some kind of weird prost tuque thing. >> reporter: this neighbor and others say the scene we observed has been going on for years, but she told us it's not just the women and mostly male clientele that have her concerned. >> sometimes there is a police car parked out here for hours. >> reporter: on our first night outside of the bar a marked oakland police cruiser parked in front of us and we watched sergeant warren young go inside and shortly after he left, the women gain to arrive. the next tight young's cruiser was back, but it it was another uniformed officers who parked

and went inside. this officer made two visits to cafe juliet, the second lasted 27 minutes. as soon as he left just before midnight, sergeant young returned. on his third pass of the night, young drove through the parking lot next to cafe juliet, using his spotlight on the cars just as we saw him do the night before. >> pardon me sarks eric with channel 2, a quick question for you, cafiality on 4th street? >> what about it? >> reporter: why are you there night after night? >> because my friend works there. >> reporter: sergeant young spoke to us outside of oakland police headquarters. are you doing this as a favor to your friend? >> no, no. no. i said my friend works there. works there, not owner, not anything else. >> reporter: is that the reason you are giving this what seems to be a lot of your time? >> i only go down there when i'm off and stay there for a time. >> reporter: young offer a different explanation when we told him

about our video of him visiting the bar in uniform during his shift? >> when i am working i do security checks there, can we talk off-camera for a second and i will tell you what is going. >> reporter: he said hecopt elaborate because of an investigation, but he said nothing illegal is going on inside cafe juliet. i had a regular told teleme flat out that you can get girls here. does that concern you to hear that? >> that is completely untrue. i can't say for a fact because you don't follow the people home. >> reporter: can you tell us what kind of business is run here? >> karaoke bar. >> reporter: the manage was out front. >> any police officer should know as you and i should know shah going on in there? it's not singing karaoke. >> reporter: he showed our video to former sheriff charles plummer and said that the oakland police department should question what his officers are doing here?

>> i would start an immediate investigation, absolutely right now. >> reporter: plummer with more than 50 years' in law enforcement doesn't believe we stumbled into an ongoing investigation? >> if they were checking on this place it wouldn't be a uniform doing it, but clothes plain people. >> reporter: oakland mayor quan says she expected police chief jordan will investigate? >> if he has the information, he will investigate it and i have confidence if there is any misconduct, that he will do the right thing. >> reporter: so far chief jordan has not responded to our repeated requests to interview him, officer ko or anything with the deputy's command staff. oakland police chief howard jordan issued a written response after we aired our story and said, "i take these allegations very seriously and the department opens investigations as soon as the circumstances were brought to my attention. because these are open investigations i am limited in

what can be discussed." now to what the state called artous pay, a bureaucratic way for extra pay for taking extra risks, but taxpayers may think of it an un warranted way to take in extra pay. >> you get arduous pay? >> no, i believe it's just management. >> reporter: we asked state workers willardous pay. >> you are doing something maybe hazardous or above, you know, beyond the hours you are supposed to worth brings to mind a bomb squad, extra pay for the risks or a hazardous materials team, called to emergencies. but why would administrators at state unemployment headquarters reap more than $1 million in arduous pay? >> there are times that you have emergencies, where i think you can make the case it's warranted. >> reporter: edd says the emergency was the recession. pushing top staff to put in

long, arduous hours, processing a mountain of unemployment claims. is that why managers get paid more because they work more? >> i don't know what the rules are regarding -- there are different categories. >> they are basically creating their own emergencies by creating a fiscal crisis. and then to handle that crisis, they are benefiting from it. >> reporter: critics point to pay records. showing supervisors who can't get overtime, tapping arduous pay instead. >> and the fact that they are the ones doing the abuse is shocking to my. they should be representing us. >> reporter: and employment development is one of dozens of agencies, boosting manager's pay by as much as $1200 a month, payouts total almost $5 million over four years during a time most state employees were being forced into unpaid furloughs. >> it has been evaluated bit management of our department ape approved and documented rfp arduous work must be on

deadline and unavoidable and heavy workload that exceeds normal hours. the finance department racked up $1 million in arduous pay, preparing annual state budgets. >> so it's not uncommon to have late-nights, early mornings, weekends to meet nose constitutional deadlines. >> why are they getting paid extra hours for doing their job when the state is broke? >> reporter: tax watchdogs say it was never meant for desktops when it began years ago to compensate fire agencies. when we return, how keeping something too close to your heart can kill you? look at you guys with your fancy-schmancy u-verse high speed internet. you know, in my day you couldn't just start streaming

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take a step forward and chase what matters. . breast cancer strikes more than 200,000 women annually, killing one in five, 40,000 of them every year. ktvu health and science editor

revealed how young women may unwittingly be putting themselves in harm's way. >> reporter: it's convenient say many young women. >> it's probably the most convenient place to put it, especially when you go out. you put your money on one breast and your phone on other. >> it's really easy to festival vibration and you can see the call really fast. >> if i'm wearing a dress i slip it in the straps or down in the center. >> reporter: maybe they should talk to tiffany frantz. her mother had misgivings. >> we never took it seriously until after she was diagnosed. >> reporter: tiffany got breast cancer at 21? >> her tumors were exactly where her cell phone had been against her bare skin for six years. >> reporter: surgeons removed tiffany's left breast. >> it's kind of coincidental.

>> the dots here are where her tumors developed and her doctors said the destruction matched her cell phone. this imagine shows that the tumors were just under the surface of her skin. >> all this area right here which is where i put my cell phone. >> reporter: jean said she did that for ten years, she had a massectomy. >> i thought cell phones were safe. >> reporter: breast surgeon lisa bailey says cell phone-related breast cancer may be common, but doctors rarely asked about phones. i looked at this random case. would this be in the case that a cell phone would have been carried? >> very likely? >> i would never wear a cell phone meetly next to my body and i would advise all women not to do that. >> reporter: nevertheless bras like this these are now on the market with pockets for cell phones. doctors say it may be the heat

of the battery or the radio frequency radiation that make these risky. especially for younger women. >> these young breasts are in the early evolution or more sensitive to changes that might lead to cancer. >> reporter: they are now sending a warning and say men are also getting breast cancer. the wireless industry denies there is a problem and citing a lack of scientific evidence. >> there is no evidence, but that is because we haven't studied it. >> until further data either supports it or disproves it, i would keep cell phones away from the body and the breasts. >> reporter: the iphone manual says keep the phone at least ten millimeters away from any body part. >> it's as simple as that and it might receive a life and avoid a massectomy and

chemotherapy. it's easy do and why take the chance? >> reporter: tiffany's mother says she wished she would have spoken up. >> if there is a risk and we don't find out until five, ten years from now we'll see a whole clift of people with breast cancer. >> reporter: doctors say better safer than sorry. >> we have had a lot of reaction to our story from both men and women. paula chavez shared her stoyy and wrote "please ladies do not carry our cell phones or in your bra, radiation on your chest is a recipe you don't want to take a chance with." charles wong wrote, "i don't believe this 100% and yes phones do have radiation, but cause cancer? why isn't there a case with someone having brain cancer for using the phone for 15 years?" we have a lot more information on ktvu.com. it's a painful, debilitating medical condition

and shingles is often described an older person's disease, but it's affecting younger people. again, health and science editor john fowler. >> reporter: 24-year-old nevada nursing student paul told us it startedded as a painful red patch. >> when i got shingles i was out of work for two weeks. >> reporter: pain spread to several spots and first she blamed job stress. >> i was and aware i wasstressed and just thought i was busy, so it was a big surprise. >> reporter: 25-year-old giant's catcher, buster posey got shingles and got him out one game. tony la russa got it so bad. >> the pain can go on usually for a couple or three weeks. and on occasion can be people

nent. >> reporter: kaiser infectious disease doctor said shingle was once thought a disease for the elderly:there is growing evidence immunizing children against chickenpox may be leading to more adult cases of shingles. adults get an immune boost and really get shingles when around children with chickenpox. doctors say this vaccine can cut your chance of shingles in half and think of it like a chickenpox booster. >> you give it when you are old enough to protect you at 80 and yet young enough to have low risk of shingles. >> reporter: you just a bigger dose of children's chickenpox virus, the . >> it can be really painful. >> i hear it keeps people from doing quite a bit. so i hope i can avoid it. >> reporter:

doctors say one way, reduce stress. >> the herpes virus, whether a cold sore or shingles do all appear to have some relationship to stress. >> reporter: paula says she is controlling her stress one bout of shingles was enough. . when we return our investigation into how parolees, including sex- offenders are using a legal loophole to cut off their court- ordered gps trackers without fear of going back to prison?

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. when sex offenders go on parole, gps tracking devices are a condition of that parol, nonetheless some choose to cut those devices off. in fact, as ktvu's john sasaki reports of almost 1200 at-large offenders violating the tracker mandate, almost a thousand are sex offenders, and could be in or close to your neighborhood. >> reporter: this page from the department of correction bay come as a surprise, updated daily shows at-large paroles who have bailed on state's gps monitoring system including some sex-offenders from bay area counties, such as ronnie cook guilty of sexual battery and this man guilty of child molestation. >> ktvu contained this whittle blower letter that says paroloo officers are sounding the alarm by 150 paroled sex-offenders who could be living with minors

or near schools and parks all in violation of their parole and no one is looking for this. >> you take off your ankle monitor that is the great tool to take care of the really bad guys and they take their ankle monitor off, bye. no problem. >> reporter: assembly bill 109 was the bill that changed the way the california prison system operated and some argues that removed the ability of the state to return sex-offenders to prison for parole violations. >> if you are a sex offender on the run, that is not a low- level violation, folks that is big serious. >> reporter: we have learned one big problem is cutting off a gps tracking device is not a felony, so if an offender does it he is not sent back to prison and because of jail overcrowding this misdemeanor will not land a person back in jail. >> corrections parole reports from last month show sex

offender who violated and parole are not locked up in froze know jail because of overcrowding. after pouring through hundreds of pages of paroles we found one who was failing to registers a sex offender among other charges of he is now back behind bars, but for less than five months. after we aired our story, state senator ted lui said he plans on introducing legislation make it a felony for any parolee to disable their gps device. when we return, how some scammers use the warmth of your holiday heart to line their own pockets at the expense of legitimate charities.

. whether it's theselfation army bell or the food bank's call for holiday help, the person to person touch works best at the dorado bay area stores, malls and street

corners. rita williams launched a four- month investigation and she learned how one charity was padding its pocket instead of helping the helpless. >> reporter: giv er beware. you give, but where does your money go? how do you know? do you feel bad that you are collecting under false pretenses? you are legitimate, why are you running away? we take this woman who calls herself de, collecting money in san josi for rosalee house, but what she told our producener this undercover video was a shelter for batteredded women. >> what shelter do you work for. >> rosalee house. >> where is that? >> it's in santa clara county. >> she is conning people. >> reporter: that is why this shop are contacted us and we watched dee arrive before dawn and stay until well after dark and saw people give her money, lots of

and it in return she gave them a sucker. how much have you given to rosa lee house? >> i would say $10, $15. we don't have a lot to give. >> reporter: for four months we dug deeper and found the story was much bigger than this one woman. what appears to be a ring out of a dickin dickin's novel. >> i know it's a scam. >> reporter: he says he was homeless and recruited by the same folks. >> on the collections it's a 60/40 split. >> reporter: you get 60 and they get 40? >> they get 60 and you get 40. >> reporter: we visited the real rosalee house in san francisco, spelled slightly different. for survivors of domestic violence. folks there said they had great need and the street solicitors

are robbing them of donations. they complained to target and the district attorney in san josi, but nothing happened. >> it's frustrating to not be able to have somebody handle it in an appropriate manner. >> reporter: target and other stores put up signs warning customers not to give. >> i asked management who is this lady and why he is out there? they said they didn't want her to call the cops and i did. >> did they come? >> no. >> reporter: he says the unit has gone from 8-2 deputies investigating 4800 cases a year. >> i spent probably the most amount of hours on a fraud case only to come to find out that the punishment that they received was far less than some violent criminal received and they got away where a lot more money. >> reporter: street officers don't check to see if the tax id number of the alleged charity is valid. in it case, it isn't. the number is for a city business license you get on- line. the person who runs the office

told us that the information you submit each your name is not verified. if they would have checked like we did at the location lifted for losa lee house they would find this motel. >> st. joseph's catholic church sharonh the homeless and domestic violence victims and she was suspicious when she saw a man collecting for rosalee house, not the one she knew in san francisco. she called willie mcmillan at the number to see if there was shelter space for one of her client client. >> he said we work with individuals, but we're ought off money now. >> reporter: when i scald willie mcmillan he said why i was picking on him and said he would call me back with his tax id number and an attorney would call me, no one has. >> what is the name of this charity? >> as for dee, when she saw us coming she grabbed the money

lockbox. >> reporter: can you ask willie to come out here? willie is the boss? are you talking to willie? >> loaded them into the car and sped away. >> reporter: hitting a shopping cart as she went. >> this story came to us by one of you, a viewer and we want to hear more from you. californians have voted themselves numerous tax increases for the common good, but personal good seems to be the prime motivation for some tax evaders. ktvu's heather holmes chased down some big-names at the top of a very long list. >> reporter: our search for tax scofflaws led us to this law office of

joaquin mccoy. the attorney is seen smiling in pictures at his office with president obama and former president clinton, but he wanted nothing to do with our cameras. we're trying to track down those who owe the state and you happen to be no. 203 on list on the ground the state $203,000. >> he is also a former san francisco ethics commissioner once taxed with keeping politicians honest and now he is facing his own ethical tax dilemma. is it fair that folks like you don't pay their fair share (i pay my fair share. i pay all of my taxes as i can. and so that is how all i have to say. >> reporter: the foreman attorney told us in a letter today that he is "working with the franchise tax board to pay his bill. mccoy is just one in a long list of californians on the hook for baxtaxes. we reviewed the top 500 tax deadbeats and found professional, including doctors, lawyers and nurses hollywood celebrities including dionne warwick and topping the list with a $10 million tax

bill is founder of san francisco-based cnet, tech pioneer halsey minor. we couldn't find him, but on main street in hayward. is there a reason you are not paying your personal income tax? we confronted another tax evader. you and your husband owe more than $500,000 state? >> no, we don't. >> reporter: that is what it says here. the franchise tax board says this couple living in this gated estate in clayton is way behind on their taxes. you are no. 2 29? >> stop. >> reporter: there is doctor deliano junior of walnut creek and he is not 1 on the list of corporate tax delinquents. we're just trying to ask him why he hasn't paid a $4.1 million tax bill? we were told that the doctor wouldn't see u-only patient.

the state will continue to publicly shame continues and tax eraiders in the hopes getting the billions in taxes its owed, missing money that could have a direct impact on everything from education to public safety. when we come back, it seems to be a mystery of the universe, which mobile phone service really is best? we'll show you your own personal best option.

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at any chase depositfriendly atm and checks right from your smartphone. get rid of prepaid problems. get chase liquid. . with most cell phone contracts lasting two years, many consumers want to make sure they get the carrier that delivers best quality for the lowest price. but no one service fits all. ktvu consumer editor tom vacar found a valuable free tool that custom tailors your mobile phone decision. >> reporter: who has the best mobile phone service? >> verizon. >> at&t. >> metro pcs. >> i think it's a toss up. >> we never tell anybody who is the best cell phone company for them. >> reporter: he can help because he is ceo of a company that measures and

monitors mobile phone speed and quality right down to the square block. root metric says it uses only store-bought unnodfied phones, testing phones' main uses. >> we put software that automates tests and tests we run are calls, uploading and downloading data tests and texting. >> reporter: employers travel around the nation and transferring to the access, but that general information is not specific to how you use your phone. >> for some people, all they want that phone for is for calling. other people, all i care about is data services and if i'm a teenager i probably only care about texting. >> reporter: to make it much more useful there is a free apple for apple or android and allows consumers to check strength and speed right where they are and compare other carriers' coverage and report dead spots. the more people will use that, all of that combined data makes it more accurate. >> with the crowd and consumer

provides here is much more of a real-time level of information in many more places and kind of all the time. >> reporter: that is because many factors affect call and data quality. including the number of cell towers the carrier has, the type and amount of wireless frequencies that they use, the topography of the land and the weather at any given time. >> even the season. >> reporter: in physical and winter, false vigil fewer leafs to penetrate and the whole system works better, but even the telephone you have can make a great big difference. >> we're seeing differences of ten and 20% in terms of performance. >> reporter: root metric says it retests each area every six months to keep up with ever changing scenarios and technologies. consumers contribute everyday. outlet malls are builds a way to shop your favorite high-end brand at a fraction of the cov. but are you really spending more than you bargained for? here is what my investigation revealed. >> i got two pairs for -- i

got some of these. she cruised by the outlets in san leandro before her cruise to mexico. >> she came ready to load up, alexandra flores came here with a different mission. >> i came for dress shopping. >> reporter: what did you buy? what are these? >> nike shoes. >> reporter: how did that happen? >> i found them for a really great price, so i just bought them. >> reporter: both women are textbook outlet shoppers. says consumer psychologies, but she cautions. >> be careful, outlet shopping isn't the bargain that people think it is. >> despite what the pricetag tells you? >> it would be rare to fiend a super huge bargain at an outlet stores than five years ago. >> reporter: retailers got rid of it all at outlet stores and flash sales

on the internet, but now by some estimates more than 80% of all the merchandise at a typical outlet mall is made specifically for those outlet stores and while the prices may certainly be lower, yarrow says so too is the quality, something that many shoppers don't know about. >> i didn't know that. >> reporter: one way to know what you are getting is to examine the label. for example, this is the regular banana republic label, but look at three diamonds under the brand on this label. they tell you these parents were made specifically for the banana republic factory store. we asked the san francisco- based company how many of any of its top-tier merchandise could be found and we got this response, "thatting the stores have, "two senator design teams and the difference is banana republic factory store products are sold for exceptional prices." all shoppers look at prices. >> i like the bargain.

>> i really like them, and i saw the price and i liked it even more. >> reporter: yarrow says bargain shoppers often get too wrapped up in markdowns. >> he think it's part of the reason why so many people have closets full of clothes and nothing to wear, because they are just buying something based on price and not necessarily because it's something that they really wanted to get. >> reporter: shoppers can find good deals at outlets. >> free people is one of my favorite brands, but sometimes it's a little bit expensive. i got this and it was $88 and i got it for $39. >> reporter: the shirt is full price at the website and the lowest price we could find was $14 more than what she paid. but we also found plenty of merchandise that was about the same price you would find anyway in regular store. shoppers actually spend more when they are in bargain moding that i they can't go

wrong because they don't want to waste of the time and expense that they invested driving to the outlets or have a coupon they don't want to waste. >> that causes more spending than i think a lot of consumers realize. >> reporter: yarrow says ask yourself, do i want it? do i need it? treasthat kind of judiciousness she says leads to spending less while feeling more successful at shopping and adding one perfect thing is better than a bad load of almosts. college can be expensive these days, so expensive, many people forego to, we follow a trend, students signing up at majority universities and taking classes on-line for free. tamtara moriarty found a drawback. >> reporter: most of these students pay

$20,000 a year in tuition to be here. it's the highest touted class on artificial intelligence, but you can take it for free on- line. >> people are more interested in what you know and when you can do. >> it's like coming out west in the gold-rush, the big area that everybody wants in. >> reporter: the professor who teaches an intro to math class at stanford, which is also available free on-line says this idea of education broadcast to the masses at no charge is unchattered territory. >>. this quarter 62,000

people signed up for the class. they are called massive on-line open courses. what happened next educators call nothing short of a phenomenal. >> 450,000 people registered for these things. >> hanna isn't sure how she feels about people getting for free what she pays top dollar for. >> a little frustrating since i'm paying too much. >> reporter: these are some of the companies that offer classes. >> i would have taken a year to get something comparable. >> reporter: professor dublin says it doesn't lead to a college degree. students we spoke to on-line is not on campus. to get that experience you need to pay stanford tuition and stanford says this experience on-line can give you a taste of

a stanford education for free. >> when we return, bullying has become more provasive, particularly as people use the internet. we'll see if the new laws are work. [ laughter ] [ girl ] wow, you guys have it easy.

i wish i had u-verse when i was your age. in my day, we didn't have these fancy wireless receivers. blah blah blah. if i had a sleepover, i couldn't just move the tv into the playroom. no. we had to watch movies in the den because that's where the tv outlet was. and if dad was snoring on the couch, we muscled through it. is she for real? your generation has it made. [ male announcer ] the wireless receiver only from at&t u-verse. get a free wireless receiver with a qualifying u-verse plan. rethink possible.

. despite internet's wonder it gives lullies another place to pick on people of a canadian teenager recently killed herself because of what she said was nonstop bullying. ktvu's claudine wong set out to find if california's anti- bullying laws are working? >> reporter: the bullying is often caught on video. this video posted earlier this year by a frustrated mom in vallejo. last month connecticut police investigated theaterrening facebook posts and bullying can devastate, just day as ago a 15- year-old who was taunted on- line took her own life. the stories are flu, but bullying is not. assembly member laura faced it has a child. did your school keep you safe?

>> my school did not, no. i felt that i was alone in this. >> reporter: is it safe now? are we doing enough now? how would you respond? >> i would, you know, i would say we are not doing enough. >> reporter: since 1999 ten strait laws have passed, two went into effect in july and one provides a paper trail. we sifted through hundreds of federal discrimination complaints and struggled to find any that dealt directly with bullying and state says you won't find any in it's uniform complaint because it was included in the democracy of "discrimination." it is now. educators still advice people to go to teachers first. >> this law has a clause that requires teachers to intervene when safe to do so, when they witness an act of bullying and that is the first time that that issue has been codified in a sense. >> reporter:

for the first time ever, a $400,000 school audit is underway. >> i want to see what is in place and what is working and what isn't, to see if the teachers even know what the rules are, know what the laws are and actually talk to students and parents to see if they understand what their rights are. >> reporter: assembly member ammiano supports the audit, but says, "i think it's too early to say if the law is working, homophobic and bullying attitudes have been around for hundreds a years and can't expect them to go away in 100 days." you can't sleep tight if the bedbugs bite and as an investigation by kutv's david stevenson say that the strictest regulations make no difference to busy biting bedbugs while whether in a humble hobble or a busy hotel.

>> reporter: it's the kind of sovereign that business travelers or tourists don't want to take home. >> we sleep and we're afraid. >> reporter: they are bedbugs the scourge of hotel and hotel guests; they showed us bites on their bodies. what do you think should be done so it doesn't happen to anybody else? >> i don't know. it's hard to kill them. >> reporter: it's a secret that every hotel operator knows. any traveler can meet up with them in a bed, a train or movie theater. >> oftentimes they are traumatized and have people crying and you have to reassure them to understand it's not your fault. >> reporter: the san francisco public health department says tourist hotels tend to handle infestations on their own. the bedbug registry, which posts complaints on hotels ranging from budget to luxury is encouraging operators to speak out on line about their efforts to stop the problem.

>> because people react differently to this pest. we cannot look at a bite and say whether or not it's a bedbug. >> reporter: nevertheless public health agencies say the problem seems to be getting worse. >> past operators as a business have been treating bedbugs at a much greater number and percentage than they have ten years ago. >> reporter: pest control scapes adult bedbugs can usually be spotted with the naked eye, but not always. >> the thickness of a credit card is all you need for a bedbug to hide in. >> reporter: even he has missed them in his own hotel room and brought them back home. pest control experts would say you should take few chances when you check in. he doesn't use the hotel room closet or luggage rack and keeps his belongings away from bedbug hiding places. he inspects the mattress boxspring, the bedskirt, even the headboard places he said

bedbugs can hide without disturbance until they are ready to strike. combating the critters is a daily job for this man. he pointed out a heavy bedbug infestation. >> they are on the floor. >> reporter: san francisco on july 1st implemented some of the nation's toughest bedbug regulations, tenants must inform landlords about bedbugs and landlords must pay for a licensed pest control k. six weeks later they have to verify that the bugs are gone and landlords face fines for not following the rules. >> bedbugs don't care about the thread-count on your sheet and don't care about your bank account. you are a warm meal and that is all they care about. >> let's make this legislation pass unanimously at the board of supervisors. [ applause ] >> thank you. >> new legislation would require san francisco health inspectors to conduct an independent inspection at end it of those

six weeks. still health officials admit they need more people to fight bedbugs. >> i believe there is maybe one city that looks better than us on paper, this is new york city, but truthly they don't have enough inspectors for their housing stock either. >> reporter: which means they could be an unwelcomed surprise under any mattress. >> after we first aired our story the san francisco board of supervisors approved an ordinance that requires exterminators to report to the department of health the number of units that they treated and lance corporals have to tell prospective units if the unit were infected in the past two years if asked. as for hotels they are not obligated to tell their guests. ktvu's mike mic ktvu mike mibach with our next

story. >> reporter: locked and loaded, radios on. target city on this night. >> we'll search the residents. >> reporter: san leandro. >> initial contact is the most dangerous. slide around to the left. >> reporter: special agents from the california department of justice are on the hunt. >> it appears nobody is home at this time. >> reporter: but they keep moving. towards a door from day into night, looking for a number of people. >> next one up is no. 6. >> reporter: people who they say lost their rights to own guns but who still have them. >> people have security doors and you can't see behind the security door from the outside in the dark. >> reporter: these agents really never know what they are going to find and in this instance they knocked on the door of a woman who the state deemed mentally disabled.

she wasn't supposed to have a 9 mm., but she had it and found shells to go with it and night is not over. >> she is prohibited until 2017. >> reporter: on this full night accept agent supervisor john marsh alerts us to the number of armed, prohibited persons in california who in all have an estimated 34,000 guns. and as of last month the california doj says more than 2400 of these individuals live in the bay area. this east bay resident who lives a few doors down where agents confiscated the weapons and ammunition looks the action that the state is taking. >> someone with a criminal record shouldn't have a gun. there is a lost killings around there. >> reporter: the state doj cross references people with a list of people prohibited to carry them, convicted felons, domestic

violence offenders and folks with mental health. >> what we're trying to prevent is any violent acts happening from those prohibited people who have guns that have not filed their court-order to relinkier their firearms. >> reporter: baldwin park in california, roy perez shoots and kills his mother and two others including a 4-year-old. police say perez bought the gun used in the killings legally, but because of had a history of mental health issues at the time of his orders his name was in the database of people whose gun should have been taken away. it never was. according to statistics, provided by california doj about 75% of the prohibited persons that they are looking for are those with mental health disorders. >> you could find somebody that is stable, very unstable, medicated. so the agents are on high alert going up to these doors, because they don't know the mental stability of person that

they are going to make contact. >> reporter: the bureau of alcohol, tobacco, firearms and explosives has 40 agents across the state. >> everyday the system is populated by new people and it's populating faster than we can bring the number down. >> reporter: they are on their own, every week, one city at a time, one door at a time, looking to keep you and others safe. >> for more information on all of our special reports just go to ktvu.com. and again, we want to hear from you. if you have an idea, e-mail us at ireports@ktvu.com. thanks for watching.